Data & ResearchJune 29, 2011

Staying Busy Trumps Financial Reasons for Postponing Retirement

A growing number of the American middle-class expects to work well beyond traditional retirement age, according to the First Command Financial Behaviors Index.

Reported by Rebecca Moore

Recent findings from the First Command monthly survey reveal that 22% of middle-income people ages 25 to 70 plan to retire in their 70s, up from 14% a year ago. When they do eventually retire, three-quarters of Americans say they are likely to consider working at least part time – half expecting to work 16 to 25 hours per week.

While the survey indicates financial considerations are part of the desire for part-time employment in retirement, much of the interest in post-retirement employment is being driven by emotional motivations.

When asked why they are likely to work during retirement, American consumers said they:

Want to stay busy (69%)
Want to stay intellectually engaged (58%)
Need the extra income (49%)
Want the sense of fulfillment they get from working (44%)
Want to delay tapping into their retirement savings (31%)
Want to continue receiving benefits (29%)
Want to keep the community aspect of the workplace (17%)

“Money is important, but it’s only part of the story,” said Scott Spiker, CEO of First Command Financial Services. “In this emerging vision of post-retirement, part-time work, consumers expect to retain the intellectual and emotional satisfaction they currently enjoy in their full-time careers.”